6 Tips for Efficiently Managing Inventory as a Supplier in the Promotional Product Industry

By Jim Hollis 

Having a well-organized and responsive system for inventory management is an essential skill for suppliers in the promotional products industry.

The promotional products supply chain moves fast, and if you’re not prepared to meet the demands of your distributor partners, you’ll miss out on valuable opportunities. Check out these six tips for managing your inventory so you know exactly what you’re working with and where you stand on every order.

1. Practice Sales Forecasting
   Before implementing any strategies, the first step is to look ahead. With sales forecasting, you’ll estimate future revenue based on a variety of factors (historical data, market trends, pricing, competitor action, etc.). By identifying your best-selling products, seasonal demand and other trends that move the needle in the promotional products’ space, you’ll be able to more accurately keep stock of everything you need.
2. Invest in an Inventory Management Software
   With the right technology, staying organized is a breeze. Investing in a software designed especially for managing inventory will take a lot of stress out of your day-to-day operations by tracking inventory levels, orders, sales, deliveries and more. It’ll be especially helpful for your business to look for solutions that offer detailed reporting features.
3. Adopt Just-in-Time (JIT) Practices
   JIT inventory management involves ordering goods only as needed, which reduces carrying costs and minimizes waste. To support JIT, optimize your warehouse layout by grouping similar products together with clear labeling while ensuring high-turnover items are easily accessible. This advanced method of organization will help you respond more quickly during high-demand seasons.
4. Use ABC Analysis for Frequent Audits
   ABC analysis allows you to categorize your product inventory into three segments – high-value (A), medium-value (B) and low-value (C) items. By always knowing which products deserve the tightest control and most accurate records, you’ll be able to quickly and effortlessly conduct audits, as matching your physical stock with your detailed records helps identify discrepancies and prevent theft.
5. Monitor Lead Times
   Work to improve lead times to ensure timely deliveries and mitigate risks associated with supply chain delays. By reducing the amount of time between when an order is delivered and when it’s received, you’ll greatly improve your customer satisfaction, leading to more repeat business. It can also help lower manufacturing costs and reduce waste.
6. Implement a Reorder Point (ROP) System
   A reorder point system triggers orders when inventory levels fall below a certain threshold, helping you avoid running out of stock. Combine this with accurate demand forecasting to adjust your reorder points based on lead times, safety stock levels and demand variability, ensuring you always have the right amount of stock on hand.

With a blend of strategic planning, up-to-date technology and strong supplier relationships, you’ll be able to maximize efficiency and stay on top of all your inventory needs.

For more tips on industry success, check out our e-book, The Supplier’s Guide to Promo Success.